Boston restaurant owner to pay employees $675K in back wages

Updated: Sep 11, 2012 - 5:07 PM

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Boston restaurant owner to pay employees $675K in back wages

BOSTON (FOX 25 / MyFoxBoston.com) – The owner of three
Boston restaurants reached a settlement agreement with the U.S. Department of
Labor on Tuesday, and as a result, will have to pay 70 workers a total of
$675,000 - $337,500 in back wages plus an equal amount in liquidated damages.

An investigation by the department's Wage and Hour Division found Marc Kadish,
owner of Sunset Grill, Sunset Cantina, and Big City Restaurant, in violation of
the Fair Labor Standards Act.

Investigators found that some employees were paid "straight time" for
all hours worked instead of the required overtime rate of time and one-half for
hours beyond 40 in a workweek. The employer also failed to combine hours for
employees working at two locations in the same workweek, and therefore failed
to pay the correct overtime premium when their combined hours exceeded 40.

Additionally, the employer failed to record cash payments made to employees who
were paid part of their wages by check and part in cash. Finally, accurate
daily and weekly records of hours worked were not maintained.

The
investigation was conducted as part of an ongoing enforcement initiative
focused on the restaurant industry that is being conducted by the Wage and Hour
Division's Boston
office. Investigators have identified widespread noncompliance with the FLSA's
minimum wage, overtime and record-keeping requirements.